Montenegro is encouraged to improve its business environment to attract foreign investment, which is crucial for job creation, productivity enhancement, and sustainable economic growth, as stated by economic analyst Mirza Mulešković. His remarks come in light of a recent government proposal to implement a formal screening mechanism for foreign direct investment.
The proposed legislation aims to safeguard national security and strategic economic interests while aligning with European Union standards. Under this initiative, investors will be required to disclose details about ownership, ultimate beneficiaries, funding sources, business activities, and projected project impacts. The Ministry of Economic Development will have a period of 45 days to assess whether a more comprehensive review is warranted.
Mulešković expressed support for the initiative but emphasized that its effectiveness hinges on proper implementation and enhanced institutional capacity. Although foreign investment has played a significant role in shaping Montenegro’s economy over the past twenty years, he noted a decline in the quality of investment in recent times, with a predominant flow of capital into the real estate sector.
He pointed out that EU membership could potentially enhance both the quantity and quality of investments, provided Montenegro can offer stable regulations and efficient administrative processes. Mulešković advocated for increased focus on productive sectors such as agriculture, information technology, energy, and sustainable tourism.
Moreover, he highlighted that investment screening should adhere to transparent and equitable guidelines, evaluating the risks associated with each project instead of considering the investor’s country of origin.
